• About WordPress
    • WordPress.org
    • Documentation
    • Support
    • Feedback
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

IWO Trading Floor

Become a Great Options Trader

  • Customer Center

2b Reversal in BABA

Home › Forums › Swing Trades › 2b Reversal in BABA

  • This topic has 3 replies, 1 voice, and was last updated 7 years, 7 months ago by Steven Place.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 13, 2014 at 10:08 am #2354
    Steven Place
    Keymaster

    This is a “failed breakout” setup in BABA.

    baba

    IF BABA breaches today’s low, buy the Dec 120 put, probably for about 7 bucks.

    Place your stop at 120.55, which is a few points above today’s HOD.

    IF BABA doesn’t breach today’s low then this is a no trade.

    Assuming a buy at 7 bucks and a stop at 120.55, that is a risk of about -105 per option. If you get a profit of 105 per option, take half the position off.

    November 13, 2014 at 11:03 am #2357
    Steven Place
    Keymaster

    Getting ready to sell 1/2 position at 7.80

    November 14, 2014 at 9:47 am #2356
    Steven Place
    Keymaster

    Going to SPREAD the puts to reduce risk.

    SELL TO OPEN Dec 105 put for 2.10

    This will cut our delta from -61 per contract to -38 per contract. It will also significantly reduce theta risk while still keeping us in the trade.

    November 18, 2014 at 10:19 am #2355
    Steven Place
    Keymaster

    Time to bail on this trade, it’s seen a nice selloff but it’s BABA and all it takes is one upgrade to see a hard reversal and squeeze higher.

    Either trail a stop at 112.40, or close the trade outright here:

    Sell to close Dec 120 put for 11.00

    Buy to close Dec 105 put for 2.45

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

This is the Forum Sidebar Widget Area. You can add content to this area by visiting your Widgets Panel and adding new widgets to this area.

© 2021 Global Profit Systems International